How Should Monthly Salary Components Be Affected by Days Worked?

I work for a German MNC and I also handle payroll here. I wanted to know what is the method of calculation of monthly salary. Should the number of days worked affect all the components of the salary or only Basic, HRA, and Conv? The other components of salary in the company are Medical allowances, LTA, Professional Development, Special allowances, and Education allowances.

Thanks,
Sangeeta

Impact of LOP on Salary Components

LOP will affect other components as well. Please find attached the file for your reference.

Regards,

I'll illustrate it with an example. For instance, if the gross salary is 10,500, it can be bifurcated as follows:
- Basic 50% - 5,000
- DA 20% - 2,000
- HRA 30% - 3,000
- Attendance Bonus - 500

According to the Factories Act, the salary has to be calculated for 26 days. Therefore, 10,500/26 = 403.84 is the per-day salary. If there is a loss of pay during a month, the gross amount reduces, thereby affecting the basic, DA, HRA, and other components based on the same formula (i.e., Basic - 50%, DA - 20%, HRA - 30%, etc.).

Hope this explanation helps.

Thanks,
RK